News

CEC reports 'challenging' first-quarter

CEC Entertainment Inc. today announced financial results for its first quarter ended March 29, 2015.

May 8, 2015

CEC Entertainment Inc. announced financial results for its first quarter ended March 29, 2015.

"While sales results at our Chuck E. Cheese's stores were challenging, we made progress in a number of important areas during the first quarter," said Tom Leverton, CEO. "It was the first quarter to have all members of our new executive leadership team in place. Working together, we introduced a new menu nationwide in April at our Chuck E. Cheese's locations to enhance our dining offering for kids and adults, and we launched an initiative to add Wi-Fi to all of our locations.

"The enhancements we are making at our Chuck E. Cheese's stores coincide with changes we are making in our marketing strategy, including a change in our primary marketing agency. We believe these efforts, along with other projects currently being implemented, will drive future revenue growth. Meanwhile, we continued to be pleased with the operating performance and growth potential of Peter Piper Pizza which we acquired in October 2014."

Total revenues for the first quarter of 2015 increased 3.8 percent, or $9.7 million, over the prior year to $265.5 million, attributed to additional revenues of $18.8 million from the Peter Piper Pizza acquisition. Revenues were partially offset by a decrease in same store sales at Chuck E. Cheese's stores. Same store sales for the first quarter for Chuck E. Cheese's stores declined 5 percent from the prior year, but increased 6.8 percent over the prior year for Peter Piper Pizza stores, a period in which the company did not own Peter Piper Pizza.

Adjusted EBITDA for the first quarter of 2015 decreased 1.8 percent, or $1.5 million compared to the previous year, to $80.7 million. The first quarter of 2015 includes Adjusted EBITDA for Peter Piper Pizza, which increased 21.3 percent over the prior year, also a period CEC did not own the company, to $5.7 million.

CEC reported net income of $14.7 million for Q1 2015, a net loss of $13.2 million compared to Q1 2014 due to transaction costs incurred during the first quarter of 2014 related to the merger.